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Regular income in retirement

Senior Citizen Savings Scheme can ensure a regular income stream in retirement

I am a retired person. I want to invest some money in mutual funds that will yield 15 per cent returns without risk.

Even though you need 15 per cent return from your investment this is an unrealistic expectation from risk-free instruments. You will have to assume risk for superior returns. If you need these returns to substitute regular income, you cannot take that risk.

Consider investing a part of your money in fixed income instruments to meet the regular income requirement. The surplus amount should be invested prudently in equity. And don't take the equity exposure in one day. So assuming that you have Rs 25 lakh, put Rs 15 lakh in Senior Citizens Savings Scheme that will yield assured 9.2 per cent. Invest the remaining amount in equity to replenish your capital. Invest regularly, diversify and follow it even in lean times.

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